The Federal Government has launched a N729 billion Series 2 Power Sector Bond as part of efforts to deepen electricity sector reforms, settle outstanding debts and attract long-term investment into the industry.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the bond on Tuesday at an investor forum held in Abuja.
According to a statement by Maryann Duke, the minister’s Senior Special Assistant on Communications and Press Secretary, Oyedele said the bond was a major step in implementing the Presidential Power Sector Debt Reduction Programme.
The programme is aimed at clearing verified legacy debts, restoring investor confidence and strengthening the financial foundation of the Nigerian Electricity Supply Industry.
Oyedele said the initiative demonstrated the government’s commitment to meeting its obligations through transparent, market-based reforms designed to improve liquidity across the electricity value chain and create a more attractive environment for long-term private investment.
He said the government’s reform programme had already produced measurable results through the successful execution of the first N501 billion Series 1 Bond, which was fully subscribed and had recorded its first scheduled repayment.
“The first series proved that government keeps its commitments. Investors reward execution, not promises, and every commitment honoured today lowers the cost of capital tomorrow,” he said.
The minister explained that the second tranche would be used to settle verified debts owed to additional generation companies (GenCos), gas suppliers and service providers.
According to him, the move is expected to improve power plant availability, boost liquidity within the electricity market and strengthen operational stability across the sector.
Oyedele also stressed the importance of reliable electricity to economic growth, industrialisation, digital transformation and job creation, noting that no country had achieved sustained development without dependable power infrastructure.
During the investor forum, the minister also highlighted the broader economic reforms of the administration of President Bola Tinubu.
He said the reforms were designed to strengthen fiscal sustainability, improve the investment environment and restore macroeconomic stability.
According to him, Nigeria’s economy grew by 3.9 per cent in the first quarter of 2026, while the country recorded 11.2 per cent growth in US dollar terms in 2025.
Oyedele said the figures reflected rising investor confidence and improving macroeconomic fundamentals.
He noted that public resources alone could not meet Nigeria’s significant infrastructure financing needs, making it necessary for the country to mobilise long-term private capital through credible institutions, sound policies and innovative financing structures.
The minister urged institutional investors to continue partnering with the government in supporting reforms aimed at strengthening the economy.
He added that investment in the bond represented investment not only in electricity, but also in productivity, industrial competitiveness, job creation and shared prosperity.
Oyedele further reaffirmed the Federal Government’s commitment to sustaining reforms that strengthen institutions, build investor confidence and position Nigeria as a competitive destination for investment.
Meanwhile, the Special Adviser to the President on Energy, Olu Verheijen, disclosed on Tuesday that the Federal Government had settled N333 billion in legacy debts owed to eight GenCos.